Fidelity Disruptive Technology ETF

Fidelity Disruptive Technology ETF (FDTX) is an actively managed fund. Its managers pick technology-related companies they believe could displace established businesses, and as of August 31, 2026 it held 42 stocks led by Micron, Marvell and Taiwan Semiconductor. It costs 0.50% a year, below the 0.58% average of similar funds. It is also concentrated and volatile: its prospectus shows a 47.5% loss in 2022.

• Over the year to Oct 27, 2026, FDTX returned +29.0%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+15.3%); its best was 2024 (+24.0%).
• The deepest fall in its price history was 27.2% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.

As of Aug 31, 2026, the fund held 42 securities; the ten largest made up 51.24% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $28.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.07%, -11.94%, +7.23%.

FDTX does not track an index. Fidelity's managers aim for long-term growth by normally investing at least 80% of assets in what they call disruptive technology companies. These are firms with new or unconventional ways of doing business that could displace incumbents over time. The prospectus lists areas such as big data, artificial intelligence, cloud software, cybersecurity, e-commerce, rideshare, battery technology and next-generation hardware. A company can qualify by meeting one or more tests, such as being early to market, holding patents for high-impact products, or having clear competitive advantages. The fund may buy US or foreign stocks, growth or value, in any sector.

The managers choose stocks using fundamental analysis, which means studying each company's finances and position in its industry. They then size positions with quantitative (model-based) portfolio construction. The prospectus describes no fixed rebalancing schedule. Portfolio turnover was 44%, meaning roughly that share of the portfolio was replaced in a year. The fund is non-diversified, so it can put more money into fewer companies. As of August 31, 2026, it held 42 stocks, and the top ten made up 51.2% of assets. Micron was 8.0% and Marvell 7.2%. About 70.8% was in US companies and 9.4% in Taiwan.

Derivatives may count toward the 80% rule, but the fund held none as of August 31, 2026. Stocks made up 99.8% of assets and cash 0.3%. Like any ETF, its shares trade at market prices that can differ slightly from the value of its holdings.

• FDTX charges 0.5% a year, versus an average of 0.58% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

It is a concentrated, actively managed technology bet with high volatility and no income, so it fits best as a small add-on to a broader core.

FDTX could add extra exposure to chip, memory and software companies that a broad index fund holds in smaller amounts. The cost of that exposure is steep swings. The fund's prospectus shows a 47.5% loss in 2022, including a 30.3% drop in the second quarter of that year. There are no figures for the 2008 or 2020 crashes. Since the ETF began trading in 2023, its deepest fall was 27.2%, from February 18 to April 8, 2025. It recovered by June 26, 2025, about 2.6 months later. Anyone who had to sell shares during a year like 2022 would have locked in heavy losses. The fund paid no distributions in the year through October 27, 2026, so it provides no income. It costs 0.50% a year, about $51 in the first year on $10,000 under the SEC's standard example. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.